Question

Examples of value-added activities include all of the following except: 

 Product design. 

 Material movement. 

 Assembly activities.

 Establish an effective distribution network.

Of the following components of total quality cost, which is most damaging to a company attempting to achieve a reputation as a world-class manufacturer?

 Prevention costs.  

 Appraisal costs.

 Internal failure costs

 External failure costs 

Answer 1

b.material movement.

Product design , assembly activities and establishing efficient distribution channels are value added activities.

d.external failure costs.

External failures are those which are known through customer complaints , so it can be said that these complaints can be damaging to a company attempting to achieve a reputation as world class manufacturer.

Prevention costs, appraisal costs, internal failure costs will help in keeping the reputation.